Dollar holds steady as shutdown deal eyed

The dollar index was little changed around 99.6 on Tuesday, moving sideways so far this week as investors awaited progress on ending the record-long US government shutdown.

The Senate passed a bill to reopen the federal government and end the 40-day shutdown, narrowly securing the 60 votes needed. House Speaker Mike Johnson said the bill could pass the House as soon as Wednesday and be sent to President Donald Trump to sign.

Meanwhile, data last week showed that the US economy shed jobs in October, while consumer sentiment weakened to a 3-½-year low in early November, supporting bets for a near-term Federal Reserve rate cut.

Traders currently see about a 64% chance of a 25-basis-point Fed cut in December, while Fed Governor Stephen Miran has called for a larger half-point reduction amid falling inflation and rising unemployment.